Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 7.81 Billion
|
CAGR (2025-2030)
|
4.12%
|
Fastest Growing Segment
|
Electric
|
Largest Market
|
Northern & Central
|
Market Size (2030)
|
USD 9.95 Billion
|
Market
Overview:
The Saudi Arabia Commercial
Vehicle Market was valued at USD 7.81 Billion in 2024 and is expected to reach USD
9.95 Billion by 2030 with a CAGR of 4.12% during the forecast period. The commercial vehicle market in Saudi Arabia is witnessing strong
growth due to the expansion of industrial, construction, and logistics sectors.
Demand for trucks, vans, and buses is increasing as businesses modernize fleets
to meet efficiency and capacity needs. Government-backed infrastructure
development programs and public transportation investments are creating
favorable conditions for vehicle sales. Fleet operators are also showing
interest in upgrading to advanced, fuel-efficient models that meet stricter
emission norms and reduce operational costs.
Market
Drivers
Expansion of Logistics and
E-Commerce Operations
The rapid growth of e-commerce
and the evolution of logistics networks are significantly boosting demand for
commercial vehicles. As online retail continues to grow, companies require more
delivery vans, trucks, and last-mile transport solutions to meet rising
customer expectations for fast and reliable delivery. Logistics companies are
increasing their vehicle fleets to ensure efficient warehousing, inventory
movement, and distribution across vast geographic areas. This surge in
transportation needs directly correlates with the demand for medium and
heavy-duty commercial vehicles, especially those with better load handling and
fuel efficiency. Growth in cross-sector logistics partnerships is also
prompting fleet expansions and upgrades. Companies are optimizing delivery
routes and investing in modern, connected vehicles that improve delivery
timelines and service consistency. For instance, In Q4 2024, Saudi Arabia’s
e-commerce sector recorded a 10% year-on-year growth, reaching 40,953
registered businesses, with Riyadh leading at 16,834. The logistics sector
surged 82% in new records, totaling 16,561, while application development saw a
36% rise to 15,775 registrations. The fintech sector also grew 12% with 3,152
new records. These figures align with Saudi Arabia’s Vision 2030 goals to
expand digital commerce, boost online payments to 70%, and raise e-commerce’s
share of retail to 80%, reflecting the Kingdom’s broader push toward digital
diversification and innovation-led economic growth.
Infrastructure and Construction
Sector Growth
Commercial vehicles are integral
to supporting construction activities, from transporting building materials to
mobilizing heavy equipment across job sites. The continuous growth in
infrastructure development such as roadways, industrial parks, airports, and
housing requires a robust fleet of trucks, tippers, and other heavy commercial
vehicles to meet operational demands. Construction companies rely on these
vehicles for daily logistics, which increases demand for durable, high-capacity
models. As timelines for project delivery become more stringent, reliability
and fleet uptime take precedence, pushing businesses to invest in newer, more
efficient vehicle fleets. For instance, Saudi Arabia will invest USD 1
trillion in infrastructure by 2030 to boost non-oil sector growth, according to
Economy Minister Faisal Alibrahim. The plan aligns with Vision 2030, driven by
PIF-led innovation, industry development, and public-private partnerships.
Rising Demand for Fleet
Modernization
Many fleet operators are now
focusing on upgrading their commercial vehicles to improve fuel efficiency,
reduce downtime, and comply with tightening emission norms. Aging fleets lead
to higher maintenance costs, lower reliability, and increased safety risks. As
competition intensifies in transportation and logistics industries, businesses
recognize the importance of reliable and technologically advanced fleets to
maintain service quality and reduce total cost of ownership. Modern commercial
vehicles come equipped with telematics, GPS tracking, automated diagnostics,
and driver assistance systems, which improve route planning, fuel consumption,
and vehicle longevity. Government regulations targeting environmental
sustainability and safety compliance further compel fleet owners to phase out
older vehicles. In response, vehicle manufacturers are offering trade-in
incentives, lease options, and value-added services to attract commercial
customers seeking modernization. For
instance, during a five-day visit to Saudi Arabia in May 2025, FAW TRUCKS
secured nearly 10,000 truck orders, including a record three-year MoU for 7,500
units with distributor TJT and additional agreements for logistics and
infrastructure applications. The visit emphasized Saudi Arabia’s strategic role
in FAW’s global expansion, with plans to offer localized products, digital
fleet solutions, and aftersales support as part of its “SPRINT 2030” strategy,
aligning with the Belt and Road Initiative and Vision 2030 goals.

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Key
Market Challenges
High Initial Acquisition Costs
The upfront cost of commercial
vehicles remains a significant barrier for fleet operators and small
businesses. Purchasing new trucks, vans, or heavy-duty vehicles involves a
considerable capital investment, especially for models equipped with advanced technology
and safety features. While these modern vehicles offer long-term savings in
fuel and maintenance, the high initial price tag can deter many buyers from
upgrading or expanding their fleets. Financing options often carry restrictive
terms or require substantial down payments, which further complicates access
for smaller players. Businesses may delay procurement decisions or opt for used
vehicles that do not meet current performance or environmental standards. This
financial strain becomes even more critical in cost-sensitive sectors like
agriculture, construction, and retail logistics, where operating margins are
often tight.
Inadequate After-Sales Support
and Spare Parts Availability
A significant obstacle to the
commercial vehicle market's expansion lies in the inconsistency and limitations
in after-sales service networks. Fleet owners require prompt access to
maintenance, repair services, and spare parts to minimize vehicle downtime and
ensure operational continuity. Delays in repairs or difficulty sourcing
components lead to service disruptions, revenue loss, and increased operational
stress. Smaller towns and remote service areas often face acute shortages of
certified technicians and replacement parts, which disproportionately affects
long-haul transport operators. The lack of service infrastructure discourages
potential buyers from investing in newer models, particularly those with
advanced electronics and engine configurations requiring specialized
maintenance. A fragmented service network also undermines customer trust in
vehicle brands and limits loyalty.
Key
Market Trends
Integration of Telematics and
Smart Fleet Management
Fleet operators are increasingly
adopting telematics systems and smart fleet management technologies to enhance
operational control, reduce costs, and improve vehicle utilization. These
digital solutions offer real-time insights into vehicle location, fuel usage,
engine performance, driver behavior, and maintenance schedules. By integrating
telematics into their operations, companies can optimize delivery routes,
prevent unauthorized vehicle use, and reduce idle times. Predictive maintenance
capabilities help identify potential mechanical issues before they become
serious problems, lowering repair costs and reducing downtime. Driver behavior
monitoring contributes to improved road safety and helps reduce insurance
premiums. Cloud-based platforms enable centralized fleet tracking and analysis,
making it easier for businesses to scale operations across multiple regions.
Telematics also support regulatory compliance by providing automated reporting
and vehicle diagnostics aligned with safety standards.
Growing Interest in Alternative
Fuel Commercial Vehicles
Rising environmental awareness
and regulatory pressure are pushing commercial fleet owners to explore cleaner
energy alternatives such as electric, hybrid, and compressed natural gas (CNG)
vehicles. Businesses are evaluating long-term cost benefits associated with
lower fuel and maintenance expenses, while also aligning with sustainability
goals. Electric commercial vehicles, though still emerging in heavy-duty
segments, are being tested for light delivery operations, especially in urban
settings. Advancements in battery technology, charging infrastructure, and
government incentives are gradually reducing the barriers to adoption.
Rise of Leasing and
Subscription-Based Fleet Models
Commercial vehicle buyers are
increasingly adopting leasing and subscription-based ownership models as
flexible alternatives to outright purchase. These models offer lower upfront
costs, predictable monthly payments, and the ability to upgrade vehicles more
frequently, making them attractive to both startups and large logistics
operators. Leasing helps preserve cash flow and provides access to new vehicles
without the burden of depreciation or resale. Subscription services extend this
model by bundling maintenance, insurance, and telematics into a single monthly
package, simplifying fleet management. Businesses can scale fleets up or down
based on operational needs, which supports agility in rapidly changing
markets.
Segmental
Insights
Vehicle Type Insights
In 2024, the light commercial
vehicle (LCV) segment dominated the Saudi Arabia commercial vehicle market,
driven by its versatility, lower operating costs, and widespread applicability
across various industries. LCVs are widely used in urban logistics, small-scale
transportation, and last-mile delivery, which have seen significant growth due
to expanding retail, e-commerce, and service-based sectors. These vehicles
offer easier maneuverability in congested city environments and require less
investment compared to heavier models, making them ideal for small businesses
and fleet startups. Their ability to efficiently transport goods within short
distances without compromising fuel economy has made them the preferred choice
for a wide range of applications, including cargo transport, passenger
movement, and utility services. The demand for refrigerated vans, flatbed
pickups, and delivery vans has further contributed to the LCV segment’s strong
performance.

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Region
Insights
In 2024, the Northern and Central
region led the commercial vehicle market in Saudi Arabia due to its
concentration of industrial zones, commercial hubs, and infrastructure
projects, especially around Riyadh. As a major logistical and administrative
center, the region saw strong demand for light, medium, and heavy-duty trucks
to support trade, construction, and municipal operations. Extensive
infrastructure investments and growing commercial activity drove fleet
expansion among logistics providers and small operators, making the Central
region the core market for new and replacement vehicles. For instance, Saudi
Arabia is advancing 24 major megaprojects, including a USD 346 million
entertainment complex in Abha covering 79,000 m², projected to attract 5
million visitors annually and contribute approximately USD 1.07 billion to GDP
by 2030.
The Eastern region maintained a
strong position, supported by its extensive energy sector and industrial base.
Demand for heavy-duty vehicles remained high due to the need for petroleum
transport, equipment handling, and supply chain operations. Industrial
transport, combined with activity in export zones and port cities, contributed
to growing vehicle needs. Long-distance hauling and challenging terrain further
pushed the requirement for durable and high-capacity trucks, particularly in
sectors supporting oil and gas logistics.
The Western region also showed
significant demand, driven by urban growth and religious tourism in key cities.
Light commercial vehicles dominated the segment due to their use in shuttle
transport, logistics, and city services. Infrastructure expansion and
hospitality developments boosted demand for medium and heavy-duty vehicles to
support construction and supply delivery. A growing mix of tourism, retail, and
municipal needs continued to fuel vehicle deployment across the region.
Recent
Developments
- In 2025, Stellantis Middle East
launched the CustomFit program to enhance light commercial vehicle solutions
through certified conversions in Saudi Arabia, UAE, and Kuwait, offering
tailored options like mobile offices, ambulances, and refrigerated units.
- In 2024, Saudi Arabia launched
the King Salman Automotive Cluster in KAEC, aiming to boost GDP by $24.5
billion by 2035. The project supports local manufacturing, job creation, and
global partnerships under Vision 2030.
- In 2024, Tata Motors launched
its first AMT truck, the Prima 4440.S, in Saudi Arabia at the HEAT Show.
Powered by a 400 bhp Euro-V engine, it targets heavy-duty transport with
enhanced efficiency and comfort.
- In 2024, Mullen Automotive began
shipping 300 commercial EVs to Volt Mobility under a $210 million deal for
3,000 units, targeting GCC markets, including Saudi Arabia, for fleet leasing.
Key
Market Players
- Toyota Motors Corporation
- Isuzu Motors Saudi Arabia Company Limited
- Mitsubishi Fuso Truck and Bus Corporation
- Hino Motors Limited
- Ford Motor Company
- Hyundai Motor Company
- MAN Truck and Bus Middle East
- Volvo Trucks Corporation and Volvo Bus
- Mercedes-Benz KSA Commercial Vehicles
- Ashok Leyland
By Propulsion
|
By Vehicle
Type
|
By Region
|
|
- Light Commercial Vehicle
- Medium Commercial Vehicle
- Heavy Commercial Vehicle
|
- Northern
& Central
- Western
- Southern
- Eastern
|
Report
Scope:
In this
report, the Saudi Arabia Commercial Vehicle Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Saudi Arabia Commercial Vehicle Market, By Propulsion:
o
ICE
o
Electric
o
Hybrid
- Saudi Arabia Commercial Vehicle Market, By Vehicle Type:
o
Light
Commercial Vehicle
o
Medium
Commercial Vehicle
o
Heavy
Commercial Vehicle
- Saudi Arabia Commercial Vehicle Market, By Region:
o
Northern
& Central
o
Western
o
Southern
o
Eastern
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Saudi Arabia Commercial Vehicle
Market.
Available
Customizations:
Saudi
Arabia Commercial Vehicle Market report with the given market data,
Tech Sci Research offers customizations according to the company’s specific
needs. The following customization options are available for the report:
Company
Information
- Detailed analysis
and profiling of additional market players (up to five).
Saudi
Arabia Commercial Vehicle Market is an upcoming report to be released soon. If
you wish an early delivery of this report or want to confirm the date of
release, please contact us at [email protected]